CBI Wales director David Rosser said he was stunned by the board’s call for “many more” private companies to be brought within the scope of a proposed order relating to the Welsh language.

“I am shocked at this sudden move by the Welsh Language Board to call for a radical increase in the scope of the Welsh Language Legislative Competency Order (LCO),” he said.

“Their proposal to compel banks and insurance companies to deliver Welsh language services will have significant consequences. This threatens to undermine the good working relationship and trust which the WLB has built up with business in Wales.

“It is clear their aims go well beyond the former regulated utilities, and all companies in Wales will be concerned by this stance.

“The effect of this would be to place additional burdens on the major players in the Welsh insurance and banking industries at a time when they are trying to navigate through unprecedentedly challenging conditions.”

Mr Rosser added: “The key barrier to the voluntary extension of Welsh services in the private sector is the low level of usage.

“The Welsh Assembly Government should be using its significant resources to create the business case for using Welsh.

“If this were to be done effectively additional usage would enable more businesses to provide Welsh language services and encourage the extension of current provision by a greater number of companies currently targeted by this LCO.”

The WLB called for banks and insurers to be legally required to deliver Welsh language services in evidence to an Assembly Government committee yesterday.

The board said it welcomed the chance to give evidence to the Legislation Committee on the proposed order relating to the Welsh language and also welcomed the Assembly Government’s intention to introduce further legislation on the language.

The board said it was pleased to see included in the order several bodies such as skills agencies, which it said had a key part to play in the continuing development of the Welsh language.

But it added that it believed the proposed order was “too narrowly drawn” and it said consideration should also be given to including people who providing savings, credit, loan, or bank account services.

It is also suggesting the inclusion within the new legislation companies offering scheduled bus services, airports, ports, bus and coach stations and toll-gates.